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HomeMy WebLinkAbout05.f. Amend Travel and Expense Reimbursement Policy No. BP 008Central Contra Costa Sanitary District 5� -PPo ' BOARD OF DIRECTORS POSITION PAPER Board Meeting Date: December 20, 2012 Subject: CONSIDER ADOPTION OF AMENDMENTS TO TRAVEL AND EXPENSE REIMBURSEMENT POLICY NO. BP 008 Submitted By: Initiating Dept. /Div.: Ann E. Farrell Administrative REVIEWED AND RECOMMENDED FOR BOARD ACTION: .& 1� n P, Thea Vassallo Ann Farrell Finance Manager General Manager ISSUE: The District's Travel and Expense Reimbursement Policy No. BP 008 "Travel Policy" was last revised on November 21, 2008. Board approval is required to amend the policy. RECOMMENDATION: Review proposed amendments to District's Travel and Expense Reimbursement Policy and, if desired, revise said policy effective immediately. FINANCIAL IMPACTS: None. ALTERNATIVES /CONSIDERATIONS: Do not adopt proposed amendments to Policy No. BP 008. BACKGROUND: Staff is recommending a number of cleanup changes to the Travel Policy to incorporate organizational changes. In addition staff is recommending two more substantive changes. First, the Travel Policy currently requires the use of a travel agent to book all airline flights. The $20 cost of each transaction is then billed to the District. With the availability of airline search engines on the internet, our actual airline booking practice has evolved to individuals searching for the best flights and then giving that information to the travel agent for booking with the agent not providing any added value. Therefore, staff is recommending that the use of a travel agent for booking airline travel no longer be required. Second, it has been District practice to issue cash advances for hotel costs to individuals traveling on District business who do not have or do not choose to use their personal credit card. Some of these individuals do have District procurement cards. Staff is recommending that such individuals be allowed to use their District procurement card for hotel charges in lieu of requesting a cash advance when such use is approved by their supervisor and manager. Current pcard practice designates select department N.IADMINSUPIADMINIDIST- SECIPosition Papers120IZPP- Amendments to Travel Policy 12- 20- 12.doc POSITION PAPER Board Meeting Date: December 20, 2012 subject. CONSIDER ADOPTION OF AMENDMENTS TO TRAVEL AND EXPENSE REIMBURSEMENT POLICY NO. BP 008 related support staff as the only authorized staff to put any travel related expenses on their pcards. Board approval will give Purchasing the authority to amend the pcard policy to expand the use of pcards for District staff who have been issued pcards to District - related hotel expenses as long as this use is approved in advance by the supervisor or manager. The proposed amendments are indicated on the attached strikeout of the existing Travel Policy. Any additions are denoted in blue and any deletions are denoted by red strikeouts. As previously requested by the Board, staff is evaluating Board policies and will be coming back to the Board to discuss policies versus procedures and what items in current policies would more appropriately be contained in administrative procedures. These potential adjustments have not been incorporated in the current proposed amendments to the Travel Policy. RECOMMENDED BOARD ACTION: Adopt amendments to the District's Travel and Expense Reimbursement Policy No. BP 008, effective immediately. Central Contra Costa Number: BP 008 Sanitary District Authority: Board of Directors Effective: Revised: November 21, 2008 Reviewed: Initiating Dept. /Div.: Administration BOARD POLICY TRAVEL AND EXPENSE REIMBURSEMENT PURPOSE To establish a policy for appropriate reimbursement of expenses and costs incurred by elected officials, appointed officials, District Counsel and staff for travel activities that are necessary, legitimate, permissible, and actually incurred when traveling on authorized District business, provided they are itemized, fully explained and approved on the Travel Expense Reimbursement Report. POLICY All District travel must be approved in advance, excepting urgent or emergency travel benefiting the District. Board member travel is approved by budget approval and /or public report, by the General Manager, with Board majority concurrence. The General Manager's report will allow for Board consideration and approval, or denial, as well as meet AB 1234 intent for public disclosure. General Manager, District Counsel and Secretary to the District a =o travel is approved by Board majority through budget approval, report, or position paper. Employee travel is approved through the budget by the appropriate Department Director or Manager. Department Directors' travel will be approved by the General Manager. 2. Travel approval is to be consistent with the budget guidelines for travel. 3. Board Members, the General Manager, and Department Directors are authorized to travel without prior approval for compelling reasons, provided reasonable effort has been made to obtain prior approval. Review of such travel will occur consistent with the approval process identified in item 7 below. 4. While traveling on District business, it is the responsibility of the elected officials, appointed officials and employees to use sound judgment to ensure reasonable expenditure of District funds. District Board members whose expenses do not fall within this policy may be submitted to the Board of Directors for approval, in a public meeting, before the expense is incurred. 5. Board Members' attendance at conferences will be approved by the Board in advance for the fiscal year on a Board agenda. BP 008 Page 2 of 5 6. Travelers are responsible for the timely preparation and submission of their Travel Expense Reimbursement Reports (instructions for completion are on the reverse side of the form) to the Accounting Office for payment. Reports must be submitted within 30 days of the event or trip completion. Travelers should retain copies of the Report and receipts for their personal records. 7. The President of the Board of Directors shall approve travel reimbursement documents for all Board Members, District Counsel, the General Manager and the Secretary of the District. The Board President Pro Tem, or in his /her absence another designated Board member, shall have authority to approve travel reimbursement for President of the Board. The General Manager shall approve all travel reimbursement documents for Department Directors and his /her direct reports. Department Directors and Managers shall approve all travel reimbursement documents of those in their charge. PROCEDURE 1. Making Travel Arrangements: Al�-District travel arrangements maya*e4e be booked through the District's travel service or directly through Department support staff. The District's support staff and travel service will follow the approved District Travel Policy and parameters when making travel arrangements for District employees. WeFinatiea OR 616iRg the DistFiGt'S tFavel 68 r„,„es OR «wren Support staff will ensure that requesting staff has received prior budget approval from their Manager before making travel arrangements. 2. Transportation: a. Commercial Airline Travel: Elected officials, appointed officials and District employees will travel at the lowest reasonable coach class airfare within the following guidelines: (1) In order to obtain low airfares, a two -hour window policy will be used in searching for a low fare. This window policy involves searching for fares one hour prior to and after the requested departure /arrival time. The lower fare quoted within this two - hour window must be taken unless time constraints make it impossible. (2) Direct flights (one -stop) and connections (change of planes), rather than non - stops, may represent substantial savings to the District. Non -stop flights, if more expensive, cannot be taken if lower direct/ connecting fares are available and does not place an unreasonable burden on the traveler. (3) Early departures and late returns are encouraged to avoid lodging for an additional night. Travel arrangements should allow for full attendance at the subject event. (4) Air travel arrangements should be reserved as far in advance of travel date as possible. Advance planning, rather than last- minute reservations, allow for the opportunity to obtain lower fares. Travel arrangements should be booked a minimum of seven days prior to departure. BP 008 Page 3 of 5 (5) Reimbursable expenses shall be limited to the actual dates of travel, which shall be as near the event as practical, allowing for timely arrival and departure and the carrier's schedule. If the extension of travel time would achieve lower airfare and would result in a net cost savings to the District, the District will pay for actual costs incurred for hotel and meals only, subject to the other limitations of this policy, provided they do not exceed the costs which would have been incurred without an extension, and the extension is approved in advance. Any additional time (exceeding the above) taken prior to or after the event will be at the employee's time and expense. The District will not reimburse for excess baggage fees if not related to District business. (6) Use of penalty or non - refundable airfares should be considered, depending on the nature of travel, and the certainty that the trip will take place as planned. These lower- cost fares shall be selected at the traveler's discretion. If a change results in penalties, the Department Directors shall have the authority to include these charges as reimbursable, if appropriate. (7) If there is a significant difference between the cost of the flight used and a less expensive flight that was available, or if the traveler uses first -class or business class instead of an available coach -class airfare without approval from the appropriate supervisor, the traveler will be required to pay the difference in expense. (8) Use of a specific airline for the purpose of obtaining Frequent Flyer miles will not be authorized, unless the airfare is among the lowest available. b. Car Rentals: The use of a rental car must be authorized in advance. When a car rental is authorized, the elected official, appointed official or employee shall be limited to a compact or mid -size vehicle. A larger vehicle may be rented if for the purpose of transporting a group of District elected officials, appointed officials or employees. A rental car may be authorized only for a business necessity or if it is the most economical means of transportation available. The employee should be prepared to show a cost savings to the District by the use of a rental car as compared to other modes of transportation. When traveling in groups, sharing of cars is encouraged to minimize costs. Collision and liability insurance offered by the rental company should be accepted. Employees should refuel cars before returning them to the rental agency to avoid the large refueling mark -up, when economical. Officials and employees are required to notify the District's Safety and Risk Administrator and the employee's supervisor within 24 hours of any event, incident or accident related to the rental vehicle. C. Taxi and Other Local Transportation: The use of a taxi is authorized when more economical services are not available, or in cases when valid business reasons, such as timing limitations, warrant use of such transportation. If available and practical, public or courtesy limousine transportation to and from airports should be used. Use of private limousines or chauffeured cars hired solely to transport District Board Members and /or staff is prohibited. BP 008 Page 4 of 5 d. Travel in District Vehicles: District vehicles are available for local seminars. District vehicles shall not be used for personal use when attending seminars. e. Travel in Personal Vehicles: When use of a privately -owned vehicle is authorized in lieu of a common carrier, reimbursement will be based on the prevailing mileage rate, but will not exceed air coach rate to and from the destination plus local transportation costs. When travel is to a local seminar, mileage reimbursement will be calculated based on the shortest distance to the seminar from home or from work. Reasonable costs for parking and tolls will be reimbursed. 3. Lodging/Telephone: a. Lodging: Employees should limit their stay to a minimum number of nights. Reimbursement for the daily cost of lodging includes only the single occupancy room rate and applicable taxes unless shared by more than one District employee. When making reservations for lodging, attempts should be made to obtain a discounted or governmental agency rate. District travelers are expected to use good quality, but reasonably priced hotels or motels wherever practical. (The conference hotel, or its equivalent, at the conference rate, is acceptable lodging for District business.) When attending conferences, a block of hotel rooms may be offered at a reduced rate. Nevertheless, travelers should check with BTM to see if a lower rate, at the same facility, is available. Hotels will be paid for by personal credit card or by acquiring a cash advance for the hotel before the conference. If the traveler requires a cash advance and possesses a District procurement card, they may be allowed to pay for the hotel costs on that card upon check out if prior approval has been obtained from their Department Manager or Director, in order to avoid the need for a cash advance. Only District related expenses are authorized to be charged to the District procurement card. Any personal expenses on the hotel bill should be separated and not charged to the District procurement card. (Make sure when checking out that the hotel does not charge for nights that the District has paid in advance in order to hold the room.) b. Telecommunication: On authorized travel, necessary business - related telephone calls, faxes and modem connections incurred may be reimbursed. The cost of personal telephone calls made while attending a seminar will be borne by the employee. However, employees are allowed one personal call of reasonable length and cost per day at District expense. The District's Finance Managerer shall make the final determination of reasonable duration and cost on a case -by -case basis. 4. Meals: The cost of each meal is to be reported separately on a daily basis and covers the District traveler only. Receipts for all claimed meals should be included with the travel expense report. The cost of meals includes taxes and tips or service charges as applicable. Purchases of alcoholic beverages shall not be reimbursed. The maximum reimbursement for meals is $64 per day, given proper documentation by providing receipts. In cases where the individual signs up for meals that have a separate cost in addition to the conference registration, that meal would be excluded from the daily allowance. If a District BP 008 Page 5of5 traveler is accompanied by a spouse or guest and the District or a District staff person covers the cost, the District traveler will be billed for the cost of his /her spouse /guest's meal or other related costs. If the guest is a business associate, the cost may be reimbursable. See criteria and requirements in Paragraph 6, Special Expenses Paid by Employee, below. 5. Travel Advances: A request for a travel advance must be made at least two weeks prior to travel by submitting a completed Payment Authorization Request form to Accounting. There will be no travel advances for the cost of airline travel due to the District's payment for the ticket. Advances must be utilized immediately and accounted for within two weeks after completion of a trip. No additional advances will be granted before settlement of an outstanding advance. In the event an advance remains open beyond 30 days, the District may elect to deduct the amount advanced from the employee's next regular paycheck. 1 6. Special Expenses Paid by Employee, such as Meals for Business Associates: Report only expenses paid by cash, personal check, or credit card. Meal expenses, to be reimbursable, must be an expenditure necessary for the transaction of District business. The Internal Revenue Code requires that specific details showing names of guests and employees, cost, date and place, business purpose, and the business relationship of individuals be supplied. Attach receipts whenever possible. Receipts for expenditures of $25 or more are required. 7. Travel Expense Reimbursement Reports: Travel Expense Reimbursement Reports must be legible and in all cases be signed in ink by both the traveler and approver. Each expense shall be clearly and accurately identified and shown on the Report on the day the expense was actually incurred. Report all expenses paid by cash, personal check, credit card, and those paid directly by the District. Auditing and control procedures of the District require that receipts substantiating travel expenses be provided by the traveler whenever possible. Original receipts, including hotel statements, airline ticket stubs, car rental invoices, credit card receipts, paid invoices, or any receipt, which shows the date, location, nature and amount of the expenditure, shall be attached to the Report. When a receipt is not available and the expense is more than $25.00, the traveler shall provide a statement detailing the expenditures and explaining the reason for the lack of a valid receipt. However, in accordance with Government Code 53232.3 and Assembly Bill 1234, elected and appointed officials are required to submit receipts documenting each expense claimed. All documents related to reimbursable agency expenditures are public records, subject to disclosure under California Public Records Act. In addition, AB 1234 requires Board members to provide a report, written or verbal, to the Board in open session on the event, conference, seminar or training attended, to be agendized within 30 days of the event.